Veld Capital has acquired two purpose-built student accommodation (PBSA) assets, Saltwater Place and Mary Parker House, in Plymouth. The properties, comprising a total of 513 rooms, were acquired from Pickstock Group and Maple Grove Developments in separate transactions.
Strategic Acquisitions:
- Prime Locations: Both properties are strategically located near the city center, the main university campus, and Plymouth train station, offering convenient access to amenities and transportation.
- Strong Occupancy: Saltwater Place and Mary Parker House have maintained full occupancy over the past three academic years, demonstrating strong demand.
- Attractive Investment: The acquisitions provide high-income potential and strong returns, aligning with Veld Capital’s investment strategy.
Continued Growth in the PBSA Sector:
Veld Capital remains bullish on the UK PBSA market, citing favourable fundamentals, demographic trends, and a significant undersupply of quality student housing. The company plans to continue expanding its PBSA portfolio with further acquisitions in the UK.
Key Partnerships:
- Veld Capital partnered with Avignon Capital on the acquisitions and will collaborate on asset management.
- Barclays PLC provided acquisition financing.
- Danesborough Properties advised the purchasers.
- Beachrock and Cushman & Wakefield advised the vendors.
This strategic move by Veld Capital underscores the ongoing attractiveness of the PBSA sector and the company’s commitment to capitalizing on opportunities within this resilient asset class.
“The high-income potential and exceptional value of these acquisitions proved to be particularly attractive to Veld, offering strong returns for core assets in an excellent location with very solid fundamentals associated.
The high yielding nature of these investments in what has consistently proven to be a resilient asset class is something that we are actively looking to build upon as we pursue a number of other attractive opportunities in the UK PBSA market.”
Jon Silvosa, Investment Director, Veld
“Avignon are delighted to have worked in partnership with Veld Capital on these acquisitions. The assets’ proven occupational track record has provided the basis of an excellent demand profile.
“Combined with the underlying supply shortage in the Plymouth PBSA market, we identified a highly compelling story with attractive cash-on-cash returns compared to historical levels as well as wider market comparable”.
Nick Barton Cliffe, Investment Manager, Avignon
“These investments reflect our continued conviction in the UK PBSA sector which, despite its maturity, remains significantly under-supplied. It is also supported by very favourable fundamentals and demographic tailwinds in what remains one of the most sought-after education destinations globally. Saltwater Place and Mary Parker House are the first in a series of PBSA investments we expect to complete in the UK market.”
Justin Sulger, Managing Partner, Veld Capital